Atlantic Tele-Network, Inc. Reports Lower Earnings for the First Quarter of 2002.Business Editors ST. THOMAS, U.S. Virgin Islands--(BUSINESS WIRE)--April 24, 2002 Atlantic Tele-Network, Inc. (AMEX AMEX See: American Stock Exchange :ANK ANK Ankara (Turkey) ANK Attempted, Not Known ANK Alphanumeric Keyboard ANK Anunaki (ancient Sumerian Gods) ), today reported earnings of $2.0 million, or $0.40 per share, for the quarter ended March 31, 2002 as compared to $2.8 million, or $.55 per share, for the quarter ended March 31, 2001. The decrease of 27% was primarily due to the negative overall impact of the FCC's Benchmark Order coming into effect for Guyana Guyana (gīăn`ə, –än`–), officially Co-operative Republic of Guyana, republic (2005 est. pop. 765,000), 83,000 sq mi (214,969 sq km), NE South America. on January January: see month. 1, 2002, as previously disclosed, when the international settlement rate for traffic controlled by the FCC (1) (Federal Communications Commission, Washington, DC, www.fcc.gov) The U.S. government agency that regulates interstate and international communications including wire, cable, radio, TV and satellite. The FCC was created under the U.S. from the U.S. to Guyana decreased from $.85 per minute to $.23 per minute. While revenue from regular inbound in·bound 1 adj. Bound inward; incoming: inbound commuter traffic. Adj. 1. inbound international traffic decreased by $5.5 million, or 53%, in the first quarter of 2002 when compared to first quarter 2001, the decrease was offset by a 74% increase in local exchange revenue and cellular service. Cellular subscribers in Guyana increased from 9800 at March 31, 2001, to 51,244 at March 31, 2002 -- an increase of over 400%. Wireline subscribers increased 11% from 73,283 to 81,386. An increase in local rates granted by the Guyana PUC (Public Utility Commission) A regulatory body in every state in the U.S. that governs public utilities within its jurisdiction such as electricity, gas, oil, sewer, water, transportation and telephone service. Some states call it the Public Service Commission (PSC). on February February: see month. 2002 contributed about $200,000 in additional revenue in March. Total telephone operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. were $10.2 million for the first quarter of 2002, compared with $11.4 million for the corresponding quarter of 2001, a decrease of $1.2 million, or 10%. This decrease was due primarily to reductions in outbound out·bound adj. Outward bound; headed away: outbound trains. Adj. 1. outbound - that is going out or leaving; "the departing train"; "an outward journey"; "outward-bound ships" international traffic expense for traffic from Guyana to the U.S., which was also affected by the FCC Benchmark Order. Cornelius Cornelius, in the New Testament, centurion of an Italian cohort stationed at Caesarea, one of the first Gentile converts and traditionally first bishop of Caesarea. Cornelius Roman centurion baptized by Peter. [N.T.: Acts 10, 11] See : Baptism B. Prior, Jr., Chairman of the Board and Chief Executive Officer of Atlantic Tele-Network, Inc. said, "I am pleased with GT&T's efforts to offset the loss caused by the FCC's Benchmark Order by capitalizing on the market's continued demand for cellular service. But I regret that neither the Government nor the PUC of Guyana has acted yet to reasonably compensate us for this revenue loss, notwithstanding our December 1997 rate case filing and subsequent amendments, petitions and hearings on the subject. Negotiations with the Government of Guyana are presently ongoing and first quarter 2002 results have proved our contention of a need for increased local rates; GT&T's annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. return on rate base in the quarter was only 8%, as compared to the 15% guaranteed by our 1990 Government contract." Atlantic Tele-Network, Inc. is a telecommunications company See telecom company. with headquarters in St. Thomas, U.S. Virgin Islands. Its principal subsidiary, Guyana Telephone and Telegraph telegraph, term originally applied to any device or system for distant communication by means of visible or audible signals, now commonly restricted to electrically operated devices. Attempts at long-distance communication date back thousands of years (see signaling). Company, Limited, is 80% owned by ATN ATN Acute tubular necrosis, see there and is the national telephone service provider in the Cooperative Republic of Guyana for all local, long-distance and international service. ATN owns 100% of Wireless World, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , the largest internet service provider Internet service provider (ISP) Company that provides Internet connections and services to individuals and organizations. For a monthly fee, ISPs provide computer users with a connection to their site (see data transmission), as well as a log-in name and password. in the U.S. Virgin Islands and the only wireless TV provider in the USVI USVI United States Virgin Islands USVI US Vision, Inc. (stock symbol) USVI United States Vegetation Index , as well as 100% of Atlantic Tele-Center, Inc., a Web-enabled outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. call center in Guyana. ATN also holds a 44% investment in Bermuda Digital Communications Transmitting text, voice and video in binary form. See communications. Ltd., the non-wireline cellular operator in Bermuda using the name "Cellular One." This release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the federal securities laws. Actual results could differ materially from these statements as a result of many factors, including matters discussed in the Company's Form 10K annual report for the year ended December 31, 2001, which is on file with the Securities and Exchange Commission.
Schedule A
ATLANTIC TELE-NETWORK, INC.
Statement of Operations Data
For the Three Months Ended March 31, 2001 and 2002
(In Thousands, Except Per Share Data)
(Unaudited)
Three Months Ended
March 31,
------------------
2002 2001
---- ----
Telephone operations:
Revenues:
Local exchange service revenues $ 6,158 $ 3,542
International long-distance revenues 8,518 14,087
Other revenues 636 743
-------- --------
Total revenues 15,312 18,372
-------- --------
Expenses:
International long-distance expenses 2,668 3,973
Telephone operating expenses 6,368 6,094
General and administrative expenses 1,143 1,303
-------- --------
Total operating expenses 10,179 11,370
-------- --------
Income from telephone operations 5,133 7,002
-------- --------
Other operations:
Revenues of other operations 1,085 1,138
Expenses of other operations 1,906 1,853
-------- --------
Loss from other operations (821) (715)
-------- --------
Other income (expense):
Interest expense (155) (179)
Interest income 301 557
Equity in earnings of Bermuda Digital Telecom 350 179
Other income (expense): 179 98
-------- --------
Other income (expense), net: 675 655
-------- --------
Income before income taxes and minority interest 4,987 6,942
Income taxes 2,547 3,548
-------- --------
Income before minority interest 2,440 3,394
Minority interest (423) (628)
-------- --------
Net income $ 2,017 $ 2,766
======== ========
Net income per share:
Basic and Diluted $ 0.40 $ 0.55
======== ========
Weighted average common stock outstanding:
Basic 4,992 4,987
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Diluted 5,069 4,994
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Schedule B
ATLANTIC TELE-NETWORK, INC.
Selected
Operations Statistics For the
Quarters Ended December 31, 2001
and March 31, 2001 and 2002
(In Thousands, Except Access Line Data)
Guyana Telephone & Telegraph Co., Ltd.
As of As of As of
03/31/02 12/31/01 03/31/01
-------- -------- --------
Access lines (fixed) 81,386 79,913 73,283
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Cellular subscribers lines 51,244 39,206 9,800
======== ======== ========
International Long-Distance Traffic:
For the Three Months Ended
03/31/02 03/31/01
-------- --------
International Minutes of Traffic:
Inbound 19,364 16,868
Audiotext 958 677
-------- --------
Total inbound 20,322 17,545
Outbound 4,484 4,716
-------- --------
Total 24,806 22,261
International Minutes of Traffic Mix:
Inbound 78.1% 75.8%
Audiotext 3.9% 3.0%
Outbound 18.0% 21.2%
-------- --------
Total 100.0% 100.0%
======== ========
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